The Council of the European Union has approved another disbursement to Ukraine under the Ukraine Facility.
This was announced by the Prime Minister of Ukraine Denys Shmyhal.
This month's disbursement will amount to €4.2 billion, bringing the total amount of assistance under this initiative this year to €16 billion. The European Commission approved the disbursement in November.
‘Such financial support demonstrates the determination to strengthen our economy, support key reforms and European integration aspirations, and strengthen Ukraine on the path to victory,’ the head of the Ukrainian government said.
What you need to know about the Ukraine Facility
- On 22 May this year, Ukraine and the EU signed a Framework Agreement for financing under the Ukraine Facility programme. Under the Agreement, Ukraine undertakes to ensure transparency and control over the use of funds provided under the Ukraine Facility.
- The Ukraine Facility programme envisages the allocation of EUR 50 billion to Ukraine by the European Union over four years.
- In May, the Cabinet of Ministers approved a plan for the Ukraine Facility programme. The plan includes structural reforms, including in public administration, energy and agriculture.
- On 1 February, the decision to provide €50 billion to Ukraine was made at a meeting of the European Council. The funds will be disbursed to Ukraine over four years. Based on the Commission's annual report on the implementation of the Facility for Ukraine, the European Council will hold annual debates on the Facility to provide guidance.
- The EU's Ukraine Facility programme envisages the provision of EUR 50 billion to Ukraine over the period 2024-2027. Of this amount, €39 billion will be allocated to the state budget to strengthen macro-financial stability.
- The programme also provides for a special investment instrument to cover risks in priority sectors, which will amount to €8 billion. Investors will be able to receive funding under this instrument through the EBRD, the EIB and other international institutions. It is expected that the implementation of projects under this instrument will attract an additional €30 billion in investments.